6 Kiko Peleh. Kiko Peleh writes a put option on Japanese yen with a strike price of $0.008000=¥1.00 (V125.00 $1.00) at a premium of 0.0080 per yen and with an expiration date six months from now. The option is for ¥12,500,000. What is Kiko's profit or loss at maturity if the ending spot rates are ¥110, ¥115, 120, 125, 130, 135, and ¥140 per dollar?
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- Kiko Peleh's Puts. Kiko Peleh writes a put option on Japanese yen with a strike price of $ 0.008000 divided by yen (yen 125.00 divided by $) at a premium of 0.0080 cents per yen and with an expiration date six month from now. The option is for ¥12,500,000. What is Kiko's profit or loss at maturity if the ending spot rates are yen 110 divided by S, yen 115 divided by S, yen 120 divided by $, yen 125 divided by S, yen 130 divided by S, yen 135 divided by S, and yen 140 divided by S.Jako writes a put option on Japanese yen with a strike price of $0.007500/* (*123.00/$) at a premium of 0.0080¢ per yen and with an expiration date six month from now. The option is for ¥12,500,000. What is Jako's profit or loss at maturity if the ending spot rates are ¥110/$ and ¥134/$.Suppose you work as a broker in an investment company, and there is an expectation that the market interest rate will be 0.031. based on this expectation you are required to calculate the market price for the following CD; Issue date: 1 January 2021 Maturity date:10 May 2021. The face value OMR 10000. Interest on CD: 5 percent.
- Mender Co. will be receiving 700,000 Australian dollars in 180 days. Currently, a 180-day call option with an exercise price of $.74and a premium of $.02 is available. Also, a 180-day put option with an exercise price of $.72 and a premium of $.02 is available. Mender plans to purchase options to hedge its receivables position. Assume that the spot rate in 180 days is $.73. (1) Should the company use call options or put options? Why? (2) Calculate the amount received from the currency option hedge (after considering the premium paid). (3) Would the company have received more without hedging?5. The European call option on Asset Q that expires in one year has strike price $32 and option price $4. The forward price of Asset Q in one year is $36. The annual continuously compounded interest rate is 0.08. Find the price of the put option on Asset Q with strike price of $32.A speculator purchases a put option on British Pounds for 0.05$ per unit; the strike price is 1.50$. A pound option represents 31.250 units Assume that at the time of the purchase, the spot rate of the pound is 151$ and continually rises to 1.62$ by the expiration date. 1. Compute the highest net profit possible for the speculator based on the information above? 2. Compute the highest profit/loss for the seller of this put option
- (mark-to-market) You enter a short position in a € future contract with the size of €125,000 today. The futures expire in 90 days. The interest rates are i$=5.9% and iç-6.1%. The current spot rate is $1.38/€. Assume 360 days a year. If the spot rate is $1.37% € the next day and interest rates remain the same, your profit or loss for this day is $___________ __.(Keep the sign and two decimal places.)Assume a call option on euros is written with a strike price of $1.2500/€ at a premium of 3.80¢ per euro ($0.0380/€) and with an expiration date three months from now. The option is for €100,000. Calculate your profit or loss should you exercise before maturity at a time when the euro is traded spot at a. $1.10 / € b. $1.15 /€ c. $1.20 / € d. $1.25 /€ e. $1.30 / € f. $1.35 /€ g. $1.4 /€A trader creates a SHORT STRADDLE for GBP/USD with a strike price of 1.3865. The call option premium on GBP is 0.019 USD. The put option premium is 0.024 USD. One option contract represents GBP 125,000. What is the net profit of the trader if GBP/USD = 1.3869 at expiry?
- A trader creates a LONG STRADDLE for GBP/USD with a strike price of 1.2457. The call option premium on GBP is 0.017 USD. The put option premium is 0.022 USD. One option contract represents GBP 125,000. What is the net profit of the trader if GBP/USD = 1.2427 at expiry?Suppose a European call option on a sack of corn with a strike price of $50 and a maturity of one-month, trades for $5. What is the price of the put premium with identical strike price and time until expiration, if the one-month risk-free rate is 2% and the spot price of the underlying asset is $53?Suppose Yuki writes a naked 90 day call for 10,000 NZD at a strike price of NZD/JPYk = 78.53. She obtains a premium of 4 JPY for each NZD for writing the option. Note: the premium is NOT for JPY-cents. Assume zero interest rates. At expiration, JPY/NZD = 0.01218. Which of the following is closest to Yuki's overall P/L from writing this option? Group of answer choices 35,718 JPY 4281 JPY -35,718 JPY 40,000 JPY -4281 JPY